WASHINGTON, D.C. - U.S. Congressman Paul A. Gosar, D.D.S. (AZ-04) has introduced HR 5556, Environmental Compliance Cost Transparency Act, which requires federal agencies active in the wholesale power business to disclose the costs of environmental compliance to their customers:

“It’s time to take power customers out of the dark and shine a light on the true costs associated with environmental compliance,” said Congressman Gosar. “These costs are real: In the Pacific Northwest, 30% of the rates are estimated to be related to environmental costs. In Arizona, the Glen Canyon Dam flows are estimated to cost customers up to $50 million annually due to foregone power. This bipartisan legislation is a step in the right direction to delivering affordable energy to the American consumer.”

Background

Specifically, the Environmental Compliance Cost Transparency Act requires the agencies, known as the Power Marketing Administrations (PMAs), responsible for marketing and delivering power from federal projects like the Hoover Dam, to report to power customers the direct and indirect costs associated with any Federal environmental laws impacting the conservation of fish and wildlife in their monthly billing statements.

Direct costs associated with compliance include costs related to environmental studies, capital, operations, maintenance, and staffing. Indirect costs would include forgone generation and replacement power costs.

Congressman Gosar’s legislation does not repeal or change a single environmental law; it simply requires much needed transparency that is long overdue.